PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Threat of Internal Fraud a Growing Concern at Corporates

Steve Murphy by Steve Murphy
January 16, 2018
in Analysts Coverage
0
FRAUD - 3D stock image of Red text on white background

FRAUD - Red text on typography background - 3D rendered royalty free stock image. This image can be used for an online website banner ad or a print postcard.

3
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

The referenced article is based upon results from a recent UK payments survey conducted by Bottomline Technologies, a fintech specializing in various solutions related to business payments.  The gist of the piece is about concerns around fraud conducted by employees in some way, shape or form, and what firms should be doing about it.  The response level of corporates for this particular issue rose by 25 percentage points year-on-year, possibly reflective of actual financial impact versus previous generic concerns.

The survey also found that 56% of companies are unaware if they have been the victim of payment fraud, and the need for greater security was found to be the biggest driver for change in the payments industry for the second year running. With a number of high-profile cases involving internal fraud in recent years, it is a legitimate concern.

We would certainly underscore the concern, as our 2018 Outlook documents contain risk management as one of the major themes in the coming years.  A major recommendation within the cited piece is to continue moving away from paper processes, in order to facilitate more accurate monitoring of transaction patterns. This leads into a few separate points, ranging from the ongoing and increasing costs of managing fraud in conventional ways versus investing in modern technology, to the delicate balance of real  fraud versus time and effort wasted on false positives.

The accuracy of detection is another vital component in ensuring that when an issue is flagged it is taken seriously. Fiserv’s Davies says: “There is a greater need for accurate detection, as there are often too many false positives. These mistaken fraudulent transactions feed into the idea of fraud not being a serious issue. “But falling into complacency about what is a false positive will not negate the likelihood of financial crime.” The arrival of real-time payments will make these scenarios more difficult to detect.

One thing for certain is that financial institutions have a higher risk than other industrials, given the regulatory impact and reputational damage that accompanies cases of actual fraud. We have pointed this out in a number of reports, and the stakes are increasing each year.

The outcome of falling victim to fraud extends further than loss of funds. Bottomline’s Richardson says: “Companies are very aware of the reputational risk they face now. The more they know about a transaction, the more they can be sure of who it is they are paying.” Keeping pace with changing payments might mean companies asking themselves some difficult questions about their own processes. Applying two-step authentication on making changes to account details or before a payment is sent might prevent some internal frauds.

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

Read the quoted story here

Tags: CorporateFraud Risk and Analytics
3
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    legacy infrastructure

    How Modernizing IT Can Help Banks Compete With Fintechs

    February 7, 2023
    Buy Now Pay Later BNPL, B2B BNPL

    B2B BNPL Offers a High-Potential New Chapter in Payments

    February 6, 2023
    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix